Car Insurance 235 views March 30, 2020

Car Insurance is not only mandatory under the Motor Vehicles Act 1988 but it also proves beneficial as accidents are quite frequent these days. Car insurance protects the owner/driver for the cost of damages caused due to accident and also against third party liabilities faced in case any individual or his/her property is damaged by the car. 

Since car insurance is a mandatory cover, all car owners have to buy the policy. However, there are certain ways which, when adopted, can help you lower the premiums payable for your car insurance plans. Do you know what these ways are? Let’s find out –  

How To Get Better Car Insurance Rates?

Different insurance companies offer different types of car insurance plans and that too at different rates. The factors that can help you to get better car insurance rates are listed below:-

Compare Car Insurance

you can get better rates of Car Insurance by comparing different policies offered by different companies. Before Buying a policy you should do proper research about policies offered by different companies, their rates and discount. Moreover you should also compare the prices online as the online mode makes comparison easier.

Choose the coverage that you need – though a comprehensive car insurance plan offers an all-inclusive coverage, if you have a very old car of if you use the car sparingly, you can opt for the mandatory third party liability only cover and reduce the premium outgo. Similarly, if you are choosing a comprehensive policy and need add-ons, choose the add-ons which you absolutely require. For instance, if you don’t face a water-logging problem in your area where the car is parked, buying an engine protect add-on is not needed. So, when buying car insurance, choose the coverage and the add-ons wisely to cut down on unnecessary coverage benefits. This would reduce the premium.

Choosing a Voluntary Deductible

Deductible is the amount of claim which you agree to pay at every instance of claim. Car insurance plans have compulsory deductible which you are required to pay mandatorily in case of a claim. Moreover, there is an option for choosing voluntary deductible wherein you can voluntarily choose to pay an additional portion of the claim over and above the compulsory deductible. If you choose a voluntary deductible, the insurance company would give you a discount and your premium would reduce. 

 Transfer Your NCB

Insurance companies offer No-Claim discount if you do not make a claim in a policy year. This discount offers a reduction in the premium when you renew. No-claim bonus (NCB) is linked to you, the policyholder, not to the car. Therefore, if you buy a new car selling your old one, you should transfer your NCB to get discount on the new policy. This discount would help you reduce the premium outgo of the new plan.

Renew Your Policy Before it Lapses

You should renew the policy before the policy lapses to avoid hassles and also to get better premium rates. If you forget to renew the policy on time you might lose the NCB discount. Secondly, if you do not renew the policy on time it lapses. This would involve an inspection of the vehicle before the renewal is allowed. Moreover, the premium rate would also be high if a lapsed policy is renewed. So, renewing on time keeps the premium low.

Don’t Claim Small Expenses

If you do not make any claim for consecutive policy years then you can accumulate No-claim bonus (NCB) discount. This bonus allows you to claim a discount of up to 50%. However, if a single claim is made, the discount becomes zero and you have to start all over again. Therefore, you should not make claims for small repairs or for the repairs that you can afford. This way you can keep the no claim bonus discount intact which would help in reducing your renewal premium.

Claim Policy Discounts

car insurance plans allow you different types of premium discounts. You get a discount if you install anti-theft devices in your car, if you are a member of a recognized automobile association, if you buy the policy online, if you modify the car for the use of a disabled, etc. Find out the discounts offered by car insurance plans and claim as many discounts as you are eligible for. This would help in reducing your premium outgo.

Conclusion

Car insurance secures you from expenses suffered due to third party liabilities and the damages faced by the car. It is, therefore, important to buy a car insurance plan. However, if you are careful and use the above-mentioned tips, you can reduce the car insurance premium considerably. So, the next time you buy or renew a car insurance plan, use these tips and make your policy affordable on your pockets.

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